News
Ford’s love affair with EVs softens as profitability and consumer trends take focus
Update: headline updated to show Ford is still committed to EVs, just at a less intense rate.
Ford’s love affair with EVs is softening, the automaker announced today, as it shifted plans for its next few vehicles to be hybrid-electric instead of fully electric.
The move comes as profitability and consumer trends are taking focus. Ford has struggled to get its head above water in terms of making money on its EVs, scaling back its investment amount on one occasion and adjusting its strategy on another.
Consumers are also showing more interest in hybrids than pure EVs. Studies have shown that hybrid drivers are among the most satisfied on the road, as a recent survey from ACSI displayed increased satisfaction from those drivers over pure EV and gas engine owners.
Ford is taking steps to pull back from its increased focus on EVs and instead go into a new direction. “We’re committed to creating long-term value by building a competitive and profitable business,” Ford’s Vice Chair and CFO John Lawler said. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
How is Ford’s Strategy Changing?
Ford’s new strategy will see its next three-row SUVs utilize hybrid technologies. It also wants to adjust the speed at which electric vehicle models are released, hoping to be more aligned with customer adoption instead of keeping pace with industry leaders.
Tesla sells well, but Ford, even though it has been the number two brand in the U.S. for EVs, has not been able to keep pace. Tesla, simply put, is head and shoulders above everyone in the market when it comes to reliability, tech, and charging infrastructure. Although Ford has adopted Tesla’s North American Charging Standard (NACS) and gained access to the Supercharger Network, consumers still lean toward the Model 3 and Model Y, two vehicles that have dominated the market for the past several years.
Ford is taking a $400 million non-cash charge for the write-down of certain product-specific manufacturing assets for all previously planned all-electric SUVs. The company will no longer build these models, it said.
Focus on Commercial EVs
Ford will still be building EVs, but its entire game plan will be shifting significantly. Ford’s next-gen EVs will be built at the Ohio Assembly Plant in 2026 and will start with a commercial van.
The E-Transit will still be produced, as it is the best-selling commercial EV van in the country. It also helps business owners keep their bottom line as it has positive impacts on the total cost of ownership.
A New, Low-Cost, High Efficiency EV
Ford will bring a new mid-sized EV pickup to market in 2027 with more range, utility, and useability. It will be the first vehicle that comes as a result of the platform developed by the Ford Skunkworks team that the company established in 2022.
The platform developed by the Skunkworks team will yield more EVs in “multiple vehicle styles” and is designed to scale quickly thanks to its “minimal complexity.”
A new Electric Truck
Ford’s F-150 Lightning was the best-selling EV truck for several months, although Cybertruck overtook it in June. Ford planned to bring a new truck to market next year, labeling it the “T3.” However, this has been pushed back.
Ford will now bring the T3 pickup to market in the latter half of 2027. This will offer more features and experiences than any other Ford truck, including upgraded bi-directional charging and advanced aerodynamics. It will be built at the BlueOval City Electric Truck Center in Tennessee.
Overall, Ford’s shift in strategy is probably for the better, considering its business was quite literally hemorrhaging money. It is important that it develops and builds EVs, as many customers are still in the market for one and now prefer that powertrain to any other.
However, in the grand scheme, hybrids have taken over as the most desirable powertrain, which is pushing Ford to make this shift in the name of making money and going with what consumers want.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
A single line in SpaceX’s amended S-1 just sent Tesla stock down 5% in one day.
A single line buried in SpaceX’s amended S-1 filing is doing more to move Tesla’s stock price than anything Tesla itself has announced in months. The clause, disclosed as SpaceX prepares for what could be the largest IPO in Wall Street history, states that the company “may issue a significant amount of equity in connection with future transactions.” While this may be seen as boilerplate language in S-1 filings, the historical ties between SpaceX and Tesla, and with Elon Musk reportedly discussing a possible merger with close colleagues, investors are interpreting it as something closer to a signal.
The concern among institutional investors like Gary Black, managing director of The Future Fund, pointed directly to the amended filing on X, saying it “strongly suggests more SPCX equity will be issued,” which could potentially be used to acquire Tesla. He estimated such a deal could be 28% dilutive to Tesla shareholders since SpaceX would likely command a significantly higher valuation multiple. Black added that institutional investors he knows hate the idea of a combination because they prefer pure plays over conglomerates, which he said “nearly always gravitate to the lowest common multiple.”
The Tesla and SpaceX merger everyone is talking about is quietly building
The bull case runs the math differently. Tesla influencer and retail shareholder advocate AleXandra Merz pushed back on what she called a widespread misunderstanding of how merger-of-equals deals actually work. Rather than simply splitting the difference between two market caps, a merger exchange ratio is negotiated based on relative fair market values, meaning the lower valued company typically sees its stock reprice upward toward the deal value.
Under her model, SpaceX enters at a $2.5 trillion valuation and Tesla at $1.6 trillion, producing a combined entity worth $4.1 trillion split evenly between both shareholder groups. That implies Tesla’s side of the deal would be valued at $2.05 trillion, a gain of roughly $450 billion from its current market cap. She cited Dow-DuPont and CBS-Viacom as historical examples of how markets reprice both companies toward the announced exchange ratio after a deal is unveiled.
What does a Merger of Equals mean to Elon’s compensation packages?
Well, it changes everything.
Enjoy https://t.co/uekCldyITw pic.twitter.com/kolq1C9qTu
— AleXandra Merz 🇺🇲 (@TeslaBoomerMama) June 1, 2026
The SpaceX S-1 amendments also revealed just how much financial infrastructure already binds the two companies together. As Teslarati has reported, SpaceX purchased $697 million in Tesla Megapacks, $131 million in Cybertrucks, and the two companies have shared supply chain resources, and semiconductor fabrication plans since well before any merger conversation became public. A retail poll by Tesla influencer Sawyer Merritt is finding that 36% of respondents do not plan to buy SpaceX shares at IPO and 15.3% saying their decision depends on the valuation.
Do you plan on buying @SpaceX stock at its IPO?
— Sawyer Merritt (@SawyerMerritt) June 1, 2026
Whether the merger happens or not, the amended filing is seemingly moving markets and sharpened a debate that is no longer theoretical. SpaceX is weeks away from trading publicly, and Tesla shareholders are now watching every word of every filing for clues about what Musk plans to do next.
Tesla is staging a powerful rebound in Europe. New vehicle registrations surged dramatically across multiple key markets in May 2026, signaling a strong recovery from the challenges of 2025.
Data released this week show double- and triple-digit year-over-year gains in several countries, driven by refreshed Model Y production, supportive policies, high fuel prices, and renewed consumer interest in electric vehicles.
In France, registrations exploded 655 percent to 5,446 vehicles, marking Tesla’s best May performance ever in the country. Norway, a longtime EV stronghold, saw 3,345 new Teslas registered, up 29 percent from May 2025. The company even captured a commanding 21.5 percent market share there, according to Detroit News.
Growth extended to other markets as well. Sweden posted a 71 percent increase to 858 registrations. Denmark jumped 136 percent to 1,750 units, where the Model Y became the top-selling vehicle overall. Spain climbed 113 percent to 1,690 sales, while Portugal soared nearly 350 percent to 1,463.
RELATED:
Tesla Full Self-Driving expansion in Europe continues with new addition
The May results build on a broader turnaround for Tesla in Europe. The company’s sales on the continent had declined sharply in 2025, dropping between 27 and 28 percent amid production shifts, intense competition from Chinese rivals like BYD, and shifting consumer sentiment.
Early 2026 showed signs of life, with registrations rising about 45 percent across Europe in the first quarter and continuing upward momentum through April, up over 46 percent region-wide.
Europe’s overall electrified vehicle market (including BEVs, PHEVs, and hybrids) grew about 21 percent in May, providing a favorable tailwind. Tesla’s gains align with this trend, boosted by government incentives and high fuel costs that make EVs more attractive.
Earlier data from March and April already hinted at strength in Germany, where registrations had surged dramatically in prior months.
Analysts note that while competition remains fierce, Tesla’s refreshed lineup and Europe’s policy support for EVs are helping the company regain ground. The May surge suggests the worst of the 2025 downturn may be behind it, positioning Tesla for stronger performance in the second half of 2026.
This rebound is welcome news for the EV pioneer, demonstrating resilience in a competitive and evolving market. As more data rolls in, investors and industry watchers will be closely monitoring whether this momentum can sustain through the summer and beyond.
Tesla is planning to improve one of the best features on its lineup of cars, a new patent shows. Tesla’s massive glass roof on its premium models is among the coolest additions to the all-electric vehicles, but the design certainly has its complaints, especially from those who live in even slightly warm climates.
Tesla has published a new patent that promises to transform cabin comfort in its electric vehicles, particularly those equipped with the expansive glass roofs.
The document, identified as US20260091643A1 and titled “Airflow Optimization for Cabin Comfort“, addresses that common complaint. Sunlight streaming through windshields and panoramic roofs creates localized hot air pockets near the dashboard and headliner. These pockets generate significant temperature gradients that conventional heating, ventilation, and air conditioning systems struggle to manage evenly.
The exposure to direct sunlight can make the cabin extremely warm, and even after cooling down the interior temperature, combating the continuous stream of sunlight and heat is a challenge. It uses precious energy that is especially pertinent to range and efficiency.
The patent explains how standard dashboard vents push cool air upward, only to entrain warmer air from these stagnant zones and distribute it throughout the occupied cabin space. This process forces the blower to operate at higher speeds, increasing energy consumption and reducing overall efficiency.
In electric vehicles, where every watt impacts driving range, such inefficiencies prove costly.
🚨 THE MODEL Y L IS THE MOST WATCHED EV LAUNCH OF 2026. ITS GLASS ROOF HAS ONE WEAKNESS — AND A PATENT PUBLISHED THIS WEEK SHOWS @TESLA BUILT THE FIX
The Model Y L launched in China and is now arriving in Korea, Japan, and across Asia-Pacific. It also has a glass roof. So does… https://t.co/wr6XnBn1Oc pic.twitter.com/5sYpniXJbU
— SETI Park (@seti_park) April 5, 2026
Research from AAA indicates that air conditioning can diminish range by up to 17 percent under hot conditions. Tesla’s innovation shifts the approach by extracting heat at its source rather than attempting to dilute it after mixing occurs.
Engineers describe a suction HVAC unit connected to dedicated intakes positioned strategically on the upper dashboard surface and within the headliner.
These intakes link to a hot air pocket extraction duct that channels the warmest air directly into the system’s plenum for conditioning. As the blower activates, it simultaneously draws recirculated cabin air and targeted hot pocket air through filters and cooling coils before redistributing conditioned airflow.
It seems somewhat reminiscent of the Tesla heat pump, which aims to combat colder temperatures.
Tesla highlights Model Y’s heat pump innovations in new promotional video
This method reduces entrainment, lowers peak temperatures, and achieves more uniform comfort levels. Testing data reveals that facial temperature gradients drop from 21 degrees Celsius, or 69.8 degrees Fahrenheit, in conventional setups to just 12 degrees Celsius (53.6 degrees F) with the new system. Blower speeds and compressor power requirements decrease appreciably as a result.
The design incorporates smart controls that monitor sunlight intensity and internal temperature distributions in real time. Suction activates selectively only where needed, optimizing energy use without constant high demand. Furthermore, the extraction duct serves a dual purpose.
In the summer months, it pulls hot air inward for cooling; in winter, it reverses to direct warm air outward for rapid windshield defrosting. This versatility allows the reuse of existing hardware with minimal modifications, potentially enabling retrofits in current Tesla fleets.
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
Tesla’s European Comeback: Registrations soar in May as recovery gains momentum
